Renovating

Predicting the housing needs of Gen Y can be tricky

Generation Y, which ranges roughly from teens to 30-year-olds, has been analysed from here to eternity. The group is usually described as eco-conscious, tech-savvy, urban, exceptionally social and prone to postponing marriage and children. Given labels like these, builders are left to consider what type of housing will appeal to this generation.

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When considering future trends in housing, builders need to take a long, hard look at demographics. The young adults of today are the homeowners of tomorrow - or so we hope.

Generation Y, which ranges roughly from teens to 30-year-olds, has been analysed from here to eternity. The group is usually described as eco-conscious, tech-savvy, urban, exceptionally social and prone to postponing marriage and children. Given labels like these, builders are left to consider what type of housing will appeal to this generation.

Let's take them one by one: -Eco-conscious: This generation is "greener" than those before. They have been taught about saving the planet throughout their school years and have been recycling their entire lives. Many of them will be drawn to homes with green features. Homes with green roofs and solar power, for instance, will catch their eye.

Tech-savvy: - Naturally, this generation will look for homes that are wired for current and future technologies. To sell a home that's truly Internet-ready, developers may consider purchasing package deals at a discount from the provider, with fees to be bundled into condo fees.

But where Gen Y's technomania will really come into play is in the way homes are marketed: through social media, smartphone apps and whatever else is headed down the pipe.

- Urban, social and single: It's true that many Gen Y (or echo boomers, as they're sometimes known) are drawn to bigger cities for school, work, culture and nightlife. To satisfy their social needs, their ideal home might be situated in a lively, walkable downtown area, close to cafés, restaurants, trendy shops and dog parks. Condominiums are the most likely bet to meet all these criteria. They can also function as meeting places, if they're outfitted with rooftop patios, gyms and lounges. Condos are usually the most affordable option for buyers with a single income.

All this sounds pretty good - but it doesn't paint a complete picture. While statistics do show that Generation Y is largely an urban group, it's important to note that, by Statistics Canada's definition of the word (in effect at the time of the last census), areas including Kanata and Pembroke are considered urban.

Developers would be wise to consider building for Generation Y beyond the biggest city centres.

You may also be surprised to hear that 71 per cent of homeowners between 25 and 39 live in rural areas (including small towns), according to the 2006 census. And, in Ontario at least, the data show that smalltown children get married younger than city ones. They're also far more likely than their urban counterparts to purchase a single-family home as their first home. It's a safe bet that there's a pretty large group of Gen Y-ers who simply don't fit the profile.

As for the echo boomers populating the larger cities, many will stay. But in a pattern familiar to demographers, many others will leave once they start families of their own and begin craving more space.

It's also been well documented that many Gen Y-ers live at home with their parents - never having left or having "boomeranged" after college or university. Some are wisely saving for a down payment on a home, but certainly not all. Gen Y-ers are just beginning their career paths, and many of them don't make a whole lot of money. Many rent their own places and will continue to rent for a long time.

So, what's the answer? As far as urban homes go, it might be a radical downsizing of condos and apartments. "Pocket condos" - or very small condos, under 550 square feet - have been around forever in New York City and are now showing up in many other major cities. The only question is whether Generation Y is willing to make the trade-off: fewer possessions for a greater urban experience. Only time will tell.

Marnie Bennett is a leading broker with Keller Williams VIP Realty in Ottawa. She has more than 30 years' experience in real estate and has led her Bennett Real Estate Professionals team to the top spot internationally for Keller Williams. Contact her at marniebennett@bennettpros.com for a free report on 6 Things You Must Know Before You Buy.

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Generation Y, which ranges roughly from teens to 30-year-olds, has been analysed from here to eternity. The group is usually described as eco-conscious, tech-savvy, urban, exceptionally social and prone to postponing marriage and children. Given labels like these, builders are left to consider what type of housing will appeal to this generation.

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